UK house prices to increase by 23.6% by 2021

UK house prices to increase by 23.6% by 2021

A new report from the CEBR (Centre for Economics and Business Research) has forecast that the average UK property will increase by £52K by 2021. That’s a staggering 23.6% over current values.

The CEBR make these predictions despite the potential volatilities that will no doubt surface as part of the Brexit negotiations. Analysts believe that whilst the stock market is likely to be turbulent whilst the UK negotiates its exit, the underlying lack of supply in the UK housing market in the face of high demand, will continue to see house prices grow and deliver excellent returns for investors.

The reality is that real estate is not significantly affected by what happens in the equities market and the triggering of Article 50 doesn’t change this fact.

Alex Gosling. CEO of online estate agents, stated : “The UK property market seems to be Brexit-proof. It has coped remarkably well with the economic turmoil in the months following the vote to leave the EU. House prices are still being supported by a lack of property stock and although buyers are taking longer before committing, now that Article 50 has been triggered, any reservations about making a purchase may ease. It wouldn’t be at all surprising if house price growth beats expectations this year.”

The CEBR report also expect huge demand from international investors in UK property as they continue to take advantage of the low value of sterling and add to their portfolios.